South Dakota Soybean Processors LLC Files 2023 10-K

TL;DR

<b>South Dakota Soybean Processors LLC filed its 2023 10-K detailing operations and financial data.</b>

AI Summary

SOUTH DAKOTA SOYBEAN PROCESSORS LLC (SDSYA) filed a Annual Report (10-K) with the SEC on March 22, 2024. Filed 10-K for the fiscal year ended December 31, 2023. Company is South Dakota Soybean Processors LLC, SIC code 2070 (Fats & Oils). Address: 100 Caspian Ave., Volga, SD 57071. Previous name was Soybean Processors LLC, name change effective December 13, 2001. Filing includes data for fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking SOUTH DAKOTA SOYBEAN PROCESSORS LLC, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance and operational status for the fiscal year 2023. Investors and stakeholders can analyze key financial metrics, risk factors, and business segments to assess the company's current standing and future prospects.

Risk Assessment

Risk Level: low — SOUTH DAKOTA SOYBEAN PROCESSORS LLC shows low risk based on this filing. The filing is a standard annual report (10-K) with no immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the company's operational performance and potential challenges.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-22 — Filing Date (Date of submission)
• 2022-12-31 — Prior Year End (Comparison period)
• 2021-12-31 — Prior Year End (Comparison period)

Key Players & Entities

• SOUTH DAKOTA SOYBEAN PROCESSORS LLC (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-22 (date) — Filing date
• Volga, SD (location) — Business address city and state
• FATS & OILS (industry) — Standard Industrial Classification
• Soybean Processors LLC (company) — Former company name

FAQ

Industry Context

South Dakota Soybean Processors LLC operates within the agricultural processing sector, specifically focusing on soybean products.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded entities, including the annual filing of a 10-K.

What Investors Should Do

1. Analyze the financial statements for revenue trends and profitability.
2. Examine any disclosed risk factors related to commodity prices or operational disruptions.
3. Compare key financial metrics to previous years to identify performance changes.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-22: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (Provides a detailed overview of the company's financial health and operations for the fiscal year.)

FATS & OILS

Industry classification for companies involved in the processing of fats and oils. (Indicates the primary business sector of South Dakota Soybean Processors LLC.)

Year-Over-Year Comparison

This is the initial filing analyzed, so no prior filing data is available for comparison.

Key Financial Figures

• $100.4 million — ade a large investment of approximately $100.4 million into it. High Plains Partners subsequen

Filing Documents

• sdsp-20231231.htm (10-K) — 1129KB
• exhibit211subsidiariesofth.htm (EX-21.1) — 3KB
• sdspexhibit3112023.htm (EX-31.1) — 10KB
• sdspexhibit3122023.htm (EX-31.2) — 10KB
• sdspexhibit3212023.htm (EX-32.1) — 6KB
• sdspexhibit3222023.htm (EX-32.2) — 5KB
• sdsp-20231231_g1.gif (GRAPHIC) — 9KB
• 0001163609-24-000004.txt (&nbsp;) — 6126KB
• sdsp-20231231.xsd (EX-101.SCH) — 56KB
• sdsp-20231231_cal.xml (EX-101.CAL) — 61KB
• sdsp-20231231_def.xml (EX-101.DEF) — 226KB
• sdsp-20231231_lab.xml (EX-101.LAB) — 509KB
• sdsp-20231231_pre.xml (EX-101.PRE) — 370KB
• sdsp-20231231_htm.xml (XML) — 816KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 12 Item 1C. Cybersecurity 12 Item 2.

Properties

Properties 13 Item 3.

Legal Proceedings

Legal Proceedings 13 Item 4. Mine Safety Disclosures 14 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14 Item 6.

Selected Financial Data

Selected Financial Data 15 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 7A. Quantitative and Qualitative Disclosure about Market Risk 22 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 23 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 23 Item 9A.

Controls and Procedures

Controls and Procedures 23 Item 9B. Other Information 24 PART III. 24 PART IV. 24 Item 15. Exhibits, Financial Statement Schedules 24

SIGNATURES

SIGNATURES 26 2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information to investors. This Annual Report on Form 10-K includes forward-looking statements that reflect our current expectations and projections about our future results, performance, prospects and opportunities. Forward-looking statements include all statements that are not historical in nature. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward looking statements. These factors include the risks, uncertainties, trends and other factors discussed under the headings "Item 1A. Risk Factors," as well as "Item 1. Business," "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this Annual Report on Form 10-K, including: The effect of weather conditions and the impact of crop and animal disease; General economic conditions impacting the availability and price of soybeans and natural gas; The impact of global and regional economic, agricultural, financial and commodities market, political, social and health conditions; Fluctuations in U.S. oil consumption and petroleum prices; Changes in perception of food quality and safety; Damage to or loss of our facilities due to casualty, weather, mechanical failure or any extended or extraordinary maintenance or inspection that may be required; Changes in business strategy, capital improvements or developm

Business

Item 1. Business. Overview South Dakota Soybean Processors, LLC ("we," "us," "our" or the "Company") is the owner and operator of two soybean processing plants and a soybean oil refinery in the state of South Dakota. Our principal place of business is in Volga, South Dakota, where we operate a soybean processing plant and refinery, and our administrative offices are located. We also own and operate a small oilseed processing plant near Miller, South Dakota, which is approximately 100 miles from Volga. We recently acquired and own a controlling interest in a subsidiary which indirectly owns and, following completion of construction, will operate a large oilseed processing plant and refinery 3 just south of Mitchell, South Dakota. Construction of the Mitchell facility commenced in September 2023 and is expected to be completed and operational by the fourth quarter of 2025. We are owned by approximately 2,200 members, many of whom reside are agricultural producers in South Dakota and neighboring states who deliver and sell soybeans to our plants for processing and production of our products. All our assets and operations are domiciled in South Dakota, and all of our products are produced in South Dakota. Our core business consists of processing locally grown soybeans into soybean meal and oil. We market and sell soybean meal primarily to resellers, feed mills, and livestock producers as livestock feed. We market and sell multiple grades of soybean oil, in either crude or refined formats, to food, biodiesel and chemical industries. Under certain market conditions, we may register and deliver warehouse receipts for crude oil under specific terms and conditions of a Chicago Board of Trade (CBOT) soybean oil futures contract. We also market and sell contracting services for the construction and management of oilseed processing plants. We strive to maintain a competitive position in the marketplace by producing high quality products, operating highly efficient opera

Risk Factors

Item 1A. Risk Factors. We are affected by changes in commodity prices. Our revenues, earnings and cash flows are affected by market prices for commodities such as crude petroleum oil, natural gas, soybeans, and crude and refined vegetable oils. Commodity prices generally are affected by a wide range of factors beyond our control, including weather, disease, insect damage, drought, the availability and adequacy of soybean supply, government regulation and policies, and general political and economic conditions. In addition, we are exposed to the risk of nonperformance by counterparties to contracts. Risk of nonperformance by counterparties includes the inability to perform because of a counterparty's financial condition and also the risk the counterparty will refuse to perform a contract during a period of price fluctuations where contract prices are significantly different than the current market prices. We could be affected by inflation which could have a material and adverse effect on our business. We have experienced and anticipate continued effects of inflation on costs such as soybeans, materials, labor, natural gas, and electricity. In response to inflationary pressures, the U.S. Federal Reserve has raised interest rates, which has resulted in uncertainty and volatility in financial markets and increased borrowing costs under our revolving credit facilities. Although inflation has subsided the past few months, inflation and its effects, many of which are beyond our control, could escalate in the future. We may be unable to pass on all of our increased costs as a result of inflation to customers. Accordingly, inflationary pressures could have a material and adverse effect on our business. We are exposed to risk of nonperformance and nonpayment by counterparties. We are exposed to risk of nonperformance and nonpayment by counterparties, whether pursuant to contracts or otherwise. Risk of nonperformance and nonpayment by counterparties includes the inability o

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